INGENIEUR
Figure B:
Issues Related
to IWK’s
Assets
the systems currently in place.
Activities defined in the Action
Plan that have been completed
so far as shown in Figure C.
IWK’s approach towards
Asset Management is a risk
based asset management
approach. This is because as
IWK pursues its vision to be the
most efficient and environment
caring sewerage company.
Operating under a low tariff
regime, the company faces
an environment fraught with
internal and external risks.
This is further compounded by
having to operate a high number
of assets located over large
geographical areas.
Active management of
any risks comes at a cost, the
approach would be to balance
the benefits against the cost
and risk response prioritized.
Internally IWK will operate its
assets optimally based on
performance, risk and cost
over their life cycle but external
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factors including customers and
regulatory bodies are the main
drivers, and will exert influence
and set the overall boundaries.
It is critical to recognise and
understand these risks, which
could impede the provision
of services. These risks are
broadly categorised under
Asset Risks and Operational
Risks. Asset Risks are very
much dependent on the existing
condition of the asset itself,
and are usually addressed by
improving or enhancing the
asset. Operational Risks result
from the breakdown in internal
procedures, people, systems
and external threats that
affect effective operation and
management of the assets.
In year 2012, the Asset
Management Unit actively
looked into the development
of the Asset Risk Management
Framework, as a component
of IWK’s Asset Management
System. This was done to
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JUNE 2013
ensure that asset related risk
management is approached
consistently across the
company. The IWK’s Asset Risk
Management Framework sets
out the processes involved in
Risk Management Planning, Risk
Identification, Risk Qualification
and Analysis, Risk Control and
Risk Reporting.
The combination of the
impact on business priorities
and the corresponding
probabilit y provides an
indication of the severity of
the risk. An appropriate risk
treatment plan is then decided
depending on the approach to
control the risks. It is crucial to
identify, qualify and mitigate
the asset related risks as it
impacts the eight business
outcomes of the company
which are Safety, Regulatory,
C u s t o m e r, C o m m e r c i a l ,
Image, Environment, Security
& Sustainabilit y (refer to
Figure D).